Does Your Company Offer This Great Benefit?

Stephen Kirkland CPA, CMC, CFC, CFFMay 14, 2013 — 2,085 views

One of the best benefits any company can offer to its valued employees is financial education. At relatively modest costs, instructors can be brought in to teach the basics of household budgeting, debt management, income tax planning, saving for college, and retirement readiness.

Sad to say, but much of the American workforce is woefully unprepared to deal with these critical day-to-day financial challenges. Many workers grew up in homes where the parents set poor examples of how to manage money. The schools did not teach financial management basics, and we cannot rely on the government to teach it. So, to a great extent, it is up to the employers.

And employers have a self-serving reason to offer this type of education. When employees get into financial trouble, the employers are impacted. This is because the employees’ financial issues often cause increased absenteeism, distractions while on the job or employee theft.

If your company does not offer this type of benefit, let me encourage you to seriously think about it. Consider covering topics such as government benefits, including social security and Medicare, (i.e. what to expect, how to apply, what does and does not affect the amount of benefits).

Other good topics to address are the benefits offered by the employer. How many workers really understand the retirement plan and insurance options that are offered to them? Another great topic is the financial aspects of parent care (how many workers know the differences between disability and long-term care insurance?)

Brief classes can be offered in the mornings, during lunch or after hours. Instructors who offer education (and not sales pitches) are probably available nearby and would be glad to speak for a nominal payment. Simple rewards in the form of recognition can be offered to employees who participate. And the employer will surely get a good return on its investment.